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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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PJ/Case law/2013-14/1698

As per Rule 173L, refund is admissible if processing of goods is done within six months irrespective when the reprocessed goods were sent to buyer.

Case:- COMMISSIONER OF CENTRAL EXCISE, COIMBATORE V/S. LAXMI MACHINE WORKS LTD.

Citation:- 2013-TIOL-561-HC-MAD-CX

Brief facts: - The Civil miscellaneous Appeal is filed by Revenue as against the Order of Customs, Excise and Service tax Appellate Tribunal dated 03/05/2004 made in the final order No. 697/2005. The Appeal arises out of the refund claim made by the assessee under Rule 173L (3) of the Central Excise 1944, in respect of goods (casting) which were received back for making certain repair and which were cleared again on payment of duty after making necessary re-work . The assessee filed refund claim of sum of Rs. 207360/- remitted towards payment of excess duty at the time of clearing the castings after necessary re- work. The assessing authority though, found that the subject goods were received within one year from the date of clearance and refund claim was also filed within the time limit of one year, rejected the refund claim on the ground that the assessee contravened the provision of sub Rule 3 of Rule 173 L of Central Excise, 1944 by making clearing of goods after re processing after limitation of six months from the date of re-entry of said goods.

The lower authority upheld the order passed by the assessing authority, but on the different ground that the assessee completed the process mentioned under sub Rule (1) and rendered the accounts in terms of Rule (2) to the satisfaction of commissioner within six month, but the goods were returned to the same customer only after six month from the date of such return, which is contravention of sub Rule (3) of Rule 173L and the assessee is, hence, disentitled to the refund.

The Respondent went on further appeal before the Appellate Tribunal. The Appellate Tribunal set aside the order of the lower Authorities on different ground that the appellant had fulfilled the requirement of Rule 173L (3) and that Rule 173L (3) does not contain any mandatory Requirement to dispatch the goods after re-work to the same customer within six months; as such, the reason on which the refund claim was rejected by the lower authorities was not inaccordance with Rule 173L.

Reasoning of judgment: - Rule 173 of Central Excise, 1944 reveals that the time limit of within six month is apply only for processing and for rendering the accounts before the authority concerned and not for clearance of the goods. That being the factual and legal position, the reason for rejection of the claim by the lower authorities has no legal basis, as rightly decided by the Tribunal. Thus, we do not find any justification to interfere with the factual finding of the Tribunal and the order of the Tribunal warrants no interference.
 
Decision: - Appeal dismissed.

Comment:-The analogy drawn from this case is that the time limit of six months that is specified in  Rule 173L is for processing of goods and rendering the accounts before the concerned authority and not for clearance of goods. As far as the goods are processed within a period of 6 months from their receipt, refund claim of excess duty paid on clearance of reprocessed goods is admissible.
 

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